GST Council Meeting: Cigarettes, tobacco and similar products may be taxed at 40 per cent (sin tax) instead of the current 28 per cent tax.

The new GST (Goods and Services Tax) rates may come into effect from September 22. The important meeting of the GST Council will be held in Delhi on September 3 and 4, in which the suggestions proposed by the Finance Ministry will be discussed. It is believed that in this meeting, the proposal for major changes in the tax slabs will be considered in accordance with the indications given by Prime Minister Narendra Modi from the ramparts of the Red Fort. 

If the proposal is approved, there will be only 2 slabs in the GST system 

According to sources, the proposal to eliminate the two main GST slabs of 12 percent and 28 percent may be discussed in the meeting. If this proposal is approved, then there will be only two slabs in the Indian GST system, 5 percent and 18 percent. This change will make the tax system more simple.

40 percent tax can be imposed on tobacco-cigarettes and other products.  

At the same time, 40 percent tax (sin tax) can be imposed on cigarettes, tobacco and similar products instead of the currently applicable 28 percent tax. According to sources, the government has also sent its detailed recommendation for reorganizing the new GST slab to the GST council, on the basis of which the final decision will be taken in the upcoming meeting. New GST rates can be announced only after this meeting. Apart from tobacco-cigarettes, sin tax is also imposed on cigars, other smoking products, liquor and other alcoholic drinks, which is determined by the state governments.

Consumers and businessmen will get big relief 

Experts believe that this step will not only simplify the tax system but will also provide relief to consumers and businessmen, because the GST Council meeting is considered very important, so only after this, complete information about the new rates and proposals will be revealed.